## Finding motivated sellers is more important than building your buyers list

 

Finding motivated sellers is a fundamental component of real estate wholesaling. If you read our previous article, [How to Build a Buyers List](https://www.offermarket.us/guides/real-estate-wholesaling-how-to-build-a-buyers-list?ref=guide-real-estate-wholesaling-how-to-find-motivated-sellers), you'll recall our opinion that building a buyer's is a distant second place behind putting sellers under contract. If you don't know how to put sellers under contract, you will have a very hard time being a successful real estate wholesaler.

 

The purpose of this article is to teach you how to find motivated sellers. Let's take a step back and look at real estate wholesaling from a different perspective.

 

## Where are the motivated sellers?

 

Motivated sellers are all around you, and it can be overwhelming to stay organized and remember all of the different channels where motivated sellers can be found.

 

Here are some of the most important sources of motivated sellers:

 

- property tax lien lists (public record)
- property tax records showing unpaid, late balances (public record)
- property tax data showing out-of-state owner and ownership change via inheritance (public record)
- properties in your area with maintenance issues and overgrown yards​

 

## How do you get in touch with motivated sellers?

 

It's important to get this part right, because you can spend a lot of time researching only to have a pitch that misses the mark. Don't get shut down by the seller.

 

- Have a reason for getting in touch.
- Make it about the seller and how you can help.
- Be respectful and empathetic.
- Be different, remarkable, memorable.
- Show genuine curiosity and look for the catalyst to a sale.

 

​If your communication channel is a cold call, get your core message delivered up-front in an uninterrupted manner.

 

## Look for the catalyst

 

Catalysts are a motivating factor to sell in the near term. Examples include:
​
 

- Relocating for work and needs to sell quickly in order to buy another home.
- Financial emergency
- Frustrated out-of-state owner dealing with difficult tenants.

 

Whatever the reason my be, find it out. If it's enough of a catalyst, there's a high probability you can create a win-win deal.
Wholesalers post their deals for free on OfferMarket.

 

### Are you a wholesaler? [Wholesalers post their deals for free on OfferMarket.](https://www.offermarket.us/sell?ref=guide-real-estate-wholesaling-how-to-find-motivated-sellers)

Learn how real estate wholesalers find motivated sellers. Where are motivated sellers? How do you engage with motivated sellers?

Wholesaling: How to Find Motivated Sellers - OfferMarket

Real Estate Wholesaling: How To Find Motivated Sellers

## Best practices and considerations for selling a rental property

 

**1.** How much would it sell for as a primary residence vs. turnkey rental? Rental investors are not likely to pay what a primary residence buyer would pay.

 

**2.** Can you sell AS IS and not conduct expensive pre-sale repairs? How might that affect your net proceeds in a sale to either a rental investor or a primary residence buyer?

 

**3.** What are the carrying costs of your vacant property? Would it make more sense to have tenants in place on a month-to-month lease or would this make it too difficult to coordinate showings (especially with COVID related health and safety concerns)?

 

**4.** Do you need to sell now or can you continue to rent (i.e. short term lease) while addressing deferred maintenance?

 

This is a lot of food for thought and everyone has a different situation when selling a rental property. We would be happy to run the numbers for you to help you figure out the best strategy for selling your rental properties.

 

## Sell with OfferMarket

 

The easiest and most cost-effective way to sell your rental property is with OfferMarket. Whether your rental property is vacant or tenant-occupied, we have handled it all and we look forward to facilitating your Here's how it works:

 

**1. Get Offers** 

 

Take 30 seconds to fill out our [Get Offers](https://www.offermarket.us/sell) request. We'll send you our no obligation marketing contract and collect property details.

 

**2. Review Offers** 

 

Compare multiple competitive AS IS, commission-free offers from qualified buyers in our network.

 

**3. Close on your timeline** 

 

Select the best offer that aligns with your timeline. Whether you need to sell in under 30 days or you have time, our rental property sales platform is designed to meet your specific requirements. Let us handle the paperwork, titlework, and coordinate closing.

 

## What our sellers are saying

 

"When I decided to sell my rental properties in Baltimore, as an out-of-state seller, I was looking for something quick and easy but I did not want to have any regrets about selling for too low a price. At first I tried working with an agent on the MLS, that turned out to take forever because we had to wait for lease expiration and multiple FHA loans fell through. Then a friend told me about OfferMarket. I only with I found them sooner! They ran a competitive campaign, brought in a mix of rental property investors and retail homebuyers, and delivered net proceeds beyond my expectations. I avoided over $100,000 in commissions. I never would have thought I'd be able to sell my rental properties so fast, as-is, with so little effort. If you're selling a rental property, use OfferMarket."

 

*Jordan R., FL*

Selling a rental property involves unique challenges. Learn best practices for selling a rental, including managing occupancy and condition.

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Selling A Rental Property - OfferMarket Blog

Selling A Rental Property

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</div>

 
 

What if instead of being reimbursed by your private lender for your rehab, you received your rehab funds in advance? 

 

We'll get back to this in a moment, but first let's take a look at the way most private lenders fund the rehab component of your fix & flip loan.

 

## Traditional Draw Request Reimbursement

 

The traditional fix & flip loan consists of an initial component for the purchase of the property and a rehab component for the renovation of the property. While the initial purchase component is advanced at settlement for the investor to purchase the property, the rehab component is typically reimbursed based on the portion of the scope of work that has been completed. 

 

It doesn't take a financial genius to understand that this is not an ideal cash flow situation, since the fix & flip investor needs to "float" the project to get to each draw reimbursement. Even the most experienced flippers and BRRR investors are forced to use credit cards and cash on hand to fund the rehab and then wait for reimbursement. 

 

Unsurprisingly, we see the following negative consequences of traditional draw reimbursement:

 

## Credit Score Impact

 

As real estate investors go through waves of high credit utilization, their credit score suffers. This can cause issues when it comes time to refinance into a DSCR rental loan and the private lender limits the LTV due to credit score below 720 -- the magic number in real estate investing.

 

## Leaving Money In the Deal: Low Cash On Cash Return

 

If your credit score is normally 740 but you just finished an intensive rehab that required using a high percentage of your credit card limit, you might find yourself in a situation where your credit score is now 670. In this scenario, at 740 FICO you'd qualify for 75% LTV on a cash out refi, but at 670 you might qualify for 65% LTV. That could easily be the difference between a perfect BRRR where you don't leave any cash in the deal, and instead leaving thousands of dollars in the deal or even worse: being forced to bring more cash to the refi closing table. In this scenario, your [cash on cash return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return) is significantly lower than it would otherwise be. Your cash that's stuck in the deal might have been your down payment for your next investment property.

 

## DSCR Loan Refinancing Delays

 

This can lead to delays refinancing out of higher interest, short term interest only fix & flip loans, and can be especially stressful in a rising interest rate environment. If you take time to build back your credit to complete your refi, you might also miss out on your next deal.

 

## Forced Selling

 

Going one step further, low credit score can prevent you from qualifying for a DSCR rental loan, and when you otherwise would have rented and refinanced the property, you're now forced to flip it.

 

Long story short, the traditional draw process is a problem and OfferMarket Capital has the solution: Advanced Draws

 

## Advanced Draws for Fix & Flip Loans

 

Wouldn't it be better if you received a wire of funds for each stage of your rehab? Let's say you're ordering $20,000 of lumber and $12,000 of windows. What if we wired you $32,000 so you never have to carry a balance on your credit card?

 

With advanced draws, we will advance your rehab funds for each stage of your scope of work. We then inspect the work in order to advance funds for your next stage, and so on.

 

## How to qualify for advanced draws?

 

As long as you've completed 5 or more fix & flip or fix & rent rehabs, you are qualified for OfferMarket's **Advanced Draws** program. We think about this a **credit score protection program**, an excellent way to optimize your refi exit strategy and do more deals. 

 

We'd love the opportunity to be your private lender.

Advanced draws help fix & flip and fix & rent BRRR investors receive funds at each rehab stage, protecting your credit score and optimizing investments.

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What is advanced draws for fix and flip loans? | OfferMarket

What is Advanced Draws for fix and flip loans?

Grow your real estate investing business with the most competitive DSCR loan product. OfferMarket provides DSCR rental loans, bridge loans, hard money, fix and flip, slow flip, and ground up construction loans.

Private Lending | OfferMarket

Private Lending

Landlording On Autopilot

The Book On Rental Property Investing

Buy, Rehab, Rent, Refinance, Repeat

The BRRR rental property investment strategy made simple.

Rich dad poor dad

The book highlights philosophical differences of people that work for employers versus employers themselves

**Last updated:** April 16, 2024

 

Looking for the best real estate investing books? These are our go-to recommendations if you want to learn about real estate investing and sharpen your skills.

 

## Landlording On Autopilot

 

![landlording-on-autopilot-by-mike-butler-book-cover_orig.jpg](https://cms.offermarket.us/uploads/landlording_on_autopilot_by_mike_butler_book_cover_orig_78ab6b4ec8.jpg)

 

A simple, no-brainer system for higher profits, less work, and more fun.

 

### Author: Mike Butler

 

### Summary: 

 

Learn how Mike Butler (VISTA Properties, Wealth Building 24-7) managed 75 rental properties in [Louisville, Kentucky](https://www.offermarket.us/markets/louisville-ky-real-estate) with a full time job before hiring his first employee. In this book, Mike Butler shares his system for rental property management. Spoiler alert, Mike's system is incredibly simple, thoughtful and can be implemented using your smartphone. It's no surprise Mike's portfolio is now over 500 properties. Mike leveraged some of the know-how he acquired as an undercover police detective to create his simple yet robust property management system, that allowed him to keep his full time job. He shares secrets of maximizing rental income from good properties and turning around properties that aren't as performant. He dives deep into his methodologies, going as far as revealing all the exact tools and technologies he employs to run his real estate empire. The system is agnostic to locality where it's used, so it can be implemented in rural or urban settings with the same results. 

 

### Topics:

 

- Rental property investment strategy
- Landlord best practices
- Rental property management
- Tenant screening
- Section Eight

 

**[Buy On Amazon](https://www.amazon.com/gp/product/B07FJX6W1T/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=B07FJX6W1T&linkId=17300d84a75235cd7258648675c6a8dc)**

 

## The Book On Rental Property Investing

 

![the-book-on-rental-property-investing-by-brandon-turner_orig.jpg](https://cms.offermarket.us/uploads/the_book_on_rental_property_investing_by_brandon_turner_orig_c0ab82e75a.jpg)

 

How to build wealth and create passive income through smart buy and hold real estate investing strategies. The book also touches on a few topics in personal finance as it related to real estate investing. 

 

### Author: Brandon Turner

 

### Summary: 

 

Brandon Turner, a millionaire real estate investor, created a true crash course in rental property investing. If you are looking for a place to start, this book is for you. Learn about building your team, valuing properties, rehabbing, [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) and so much more. The book offers many practical lessons, and talks about why some real estate investors fail, what common mistakes everyone should avoid and how to ensure a sustainable business. Four unique strategies are shown which made Brandon a successful investor and that can be easily replicated even by someone who is just starting out. The book goes on to offer insight on how to source deals and discern which ones are worth your time. Brandon focuses on being a real estate investor and not a real estate manager, he talks at length about pitfalls of managing real estate and how you can avoid doing labor intensive tasks that suck up your time and instead focus on finding premium deals. Finally, to wrap things up, he presents ideas and methods of getting financing for your deals, in any market condition as well as ways to minimize your tax consequences.

 

### Topics:

 

- Rental property investing
- Investing in real estate
- [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) (buy, [rehab](https://offermarket.us/real-estate-glossary/rehab), rent, refinance)
- ARV (after repair value)
- Financing
- Rehabbing and renovations
- Landlord best practices

 

**[Buy On Amazon](https://www.amazon.com/gp/product/099071179X/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=099071179X&linkId=2605628342d3034818b7287049adaf25)**

 

## Buy, [Rehab](https://offermarket.us/real-estate-glossary/rehab), Rent, Refinance, Repeat

 

## The [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) rental property investment strategy made simple.

 

![buy-rehab-rent-refinance-repeat-by-david-green_orig.jpg](https://cms.offermarket.us/uploads/buy_rehab_rent_refinance_repeat_by_david_green_orig_56f4a2967b.jpg)

 

### Author: David Greene

 

### Summary: 

 

Learn how to build your rental property portfolio by buying undervalued fixer-uppers in cash, cost effectively renovating, renting and refinancing. With the [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) method, you can pull out all of your invested capital and then some if you "keep the water in the bucket" through the [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) process. The book also highlights the importance of [free cash flow](https://www.offermarket.us/real-estate-glossary/free-cash-flow) to protect your downside. The book provides a concrete plan for getting started, even with small capital investment. Systems for spotting ideal deals that should be acquired. Methods of negotiating with sellers to lock in ideal prices. Ways on how to recover most of the invested capital quickly in order to reinvest it in the next deal. Ways to increase property value and curb appeal to have better rental outcomes. David highlights importance of demographic research in his approach and how it helps him identify up and coming areas where rental markets might be heating up before competing investors swoop in and scoop all the deals. Finally, how to recruit talent to help you run your growing real estate portfolio and grown your wealth. 

 

### Topics:

 

- Rental property investing
- [BRRR](https://offermarket.us/real-estate-glossary/brrr-buy-rehab-rent-refinance) (buy, rehab, rent, refinance)
- ARV (after repair value)
- Property management outsourcing
- [Hard Money Lenders](https://www.offermarket.us/real-estate-glossary/hard-money) and [Private Lenders](https://www.offermarket.us/real-estate-glossary/private-lender)
- [Cash On Cash Return](https://www.offermarket.us/real-estate-glossary/cash-on-cash-return)

 

**[Buy On Amazon](https://www.amazon.com/gp/product/1947200089/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1947200089&linkId=01967565381716d96fed3978a222c5a4)**

## Rich dad poor dad

 

## The book highlights philosophical differences of people that work for employers versus employers themselves

 

![richdad_6ba8f1accf.png](https://cms.offermarket.us/uploads/richdad_6ba8f1accf.png)

 

### Author: Robert T. Kiyosaki

 

### Summary: 

 

Robert, an experienced investor, presents several anecdotes from his childhood to show the differences in mindset between his biological dad who always worked for someone and the dad of his best friends, who was an employer for other people. His 'rich' dad taught him the value of time, money and assets, setting Robert on a life long path to accumulate appreciating assets, such as rental investment properties. The book explains how Robert accumulated assets using his day job and invested in rentals to generate passive income and grow his own rental portfolio while adhering to the philosophy of living below his means so he can maximize his investment cashflow. One anecdote from the book, is that Robert waited extra few years so his business could purchase his first Porsche in a tax protected way instead of him buying it outright. One great take away from the book that everyone should remember, is that employer will never give you a raise you truly deserve, only you can give yourself that raise. That philosophy made him work just hard enough for someone else not get fired, instead of breaking his back to get a few percent raise every year. He used his extra time to build his own rental empire.

 

### Topics:

 

- Rental property investing
- [Tax lien certificates](https://www.offermarket.us/real-estate-glossary/tax-lien-certificates) 
- Mindset of employees vs employers
- How to be a rental property investor
- How to kick start your real estate business
- Long term mindset

 

**[Buy On Amazon](https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680178/ref=as_li_tl?ie=UTF8&tag=rentstack-20&camp=1789&creative=9325&linkCode=as2&creativeASIN=1947200089&linkId=01967565381716d96fed3978a222c5a4)**

The best real estate books for rental property investing, property management, fix and flip, financial independence and other real estate topics.

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